On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $333, 650. The journal entry to record the first interest payment using straight-line amortization is: Debit Bond Interest Expense $9, 835.00; debit Premium on Bonds Payable $1, 365.00; credit Cash $11, 200.00. Debit Bond Interest Expense $9, 835.00: debit Discount on Bonds Payable $1, 365.00: credit Cash $11, 200.00. Debit Interest Payable $11, 200.00; credit Cash $11, 200.00. Debit Bond Interest Expense $12, 565.00; credit Premium on Bonds Payable $1, 365.00; credit Cash $11, 200.00 Debit Bond Interest Expense $12, 565.00: credit Discount on Bonds Payable $1, 365.00: credit Cash $11, 200.00